DOW Correlations

DJI -  USA Index  

 31,501  823.32  2.68%

The correlation of DOW is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as DOW moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if DOW moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
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The ability to find closely correlated positions to DOW could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace DOW when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back DOW - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling DOW to buy it.

Moving together with DOW

0.96AAPLApple Inc Fiscal Year End 27th of October 2022 PairCorr
0.92MSFTMicrosoft Corp Fiscal Year End 26th of July 2022 PairCorr
0.86GOOGAlphabet Cl CPairCorr
0.97BRK-ABerkshire HathawayPairCorr
0.82FBMeta Platforms OldPairCorr
0.85UNHUnitedhealth GroupPairCorr
0.95NYANYSEPairCorr
0.93IXICNasdaq TrendingPairCorr
0.99GSPCSP 500 TrendingPairCorr
0.92RUIRussell 1000PairCorr
0.73PSNYPolestar Automotive Hldg TrendingPairCorr

Moving against DOW

0.63VTNRVertex Energy Normal TradingPairCorr
0.94DRVReal Estate BearPairCorr
0.9AMFAXAsg Managed FuturesPairCorr

Related Correlations

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Correlation Matchups

The Correlation Coefficient is a useful tool to identify correlated or non-correlated securities, which is essential in developing a diversified portfolio. It tells us the relationship between two positions you have in your portfolio or considering acquiring. Over a given time period, the two securities movetogether when the Correlation Coefficient is positive. Conversely, the two assets move in opposite directions when the Correlation Coefficient is negative. Determining your positions' relationship to each other is valuable for analyzing and projecting your portfolio's future expected return and risk.
High positive correlations   
FUBER
FMSFT
UBERMSFT
JPMA
CRMMSFT
JPMMSFT
  
High negative correlations   
TUBER
MRKCRM
MRKUBER
CRMT
TMSFT
MRKF

DOW Competition Risk-Adjusted Indicators

Nowadays, there is a big difference between DOW stock performing well and DOW index doing well compared to the competition. There are way too many exceptions to the normal that investors can tell for sure what's good or bad unless they analyze DOW's multiple risk-adjusted performance indicators. These indicators are quantitative in nature and help investors forecast volatility and risk-adjusted expected returns across various positions.
Mean
Deviation
Jensen
Alpha
Sortino
Ratio
Treynor
Ratio
Semi
Deviation
Information
Ratio
Expected
Shortfall
Potential
Upside
Value
At Risk
Maximum
Drawdown
TWTR 2.83  0.21  0.08  0.22  3.57  0.06 (2.97)  5.66 (5.40)  36.79 
MSFT 1.91  0.04  0.00 (0.12)  0.00 (0.0093)  0.00  2.97 (4.24)  9.36 
UBER 3.42 (0.20)  0.00 (0.26)  0.00 (0.08)  0.00  6.55 (7.19)  18.56 
F 2.46 (0.24)  0.00 (0.30)  0.00 (0.11)  0.00  3.89 (5.54)  16.83 
T 1.28  0.40  0.27  0.47  1.37  0.25 (1.46)  2.99 (2.47)  12.23 
A 2.01  0.00  0.00 (0.15)  0.00 (0.0148)  0.00  3.19 (3.56)  9.77 
CRM 2.63  0.06  0.00 (0.12)  0.00 (0.0138)  0.00  6.33 (5.16)  16.84 
JPM 1.47 (0.12)  0.00 (0.26)  0.00 (0.07)  0.00  2.98 (3.00)  10.78 
MRK 1.01  0.32  0.39  0.55  0.81  0.30 (1.21)  2.16 (1.54)  7.44 
XOM 1.86  0.26  0.09  0.14  2.87  0.11 (1.63)  3.03 (3.96)  11.86 

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DOW Against Global Markets

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Check out Your Current Watchlist. Note that the DOW information on this page should be used as a complementary analysis to other DOW's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Insider Screener module to find insiders across different sectors to evaluate their impact on performance.

Other Tools for DOW Index

When running DOW price analysis, check to measure DOW's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy DOW is operating at the current time. Most of DOW's value examination focuses on studying past and present price action to predict the probability of DOW's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move DOW's price. Additionally, you may evaluate how the addition of DOW to your portfolios can decrease your overall portfolio volatility.
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